According to a 2015 study, approximately 45% of small business owners are turned down for financing more than once. It’s incredible and slightly horrifying how hard it can be to get the funds you need to grow your business or just keep it running smoothly.

If your personal or business credit score isn’t perfect you may find it even more difficult to get financed. However, there is a potential solution: Fundbox.

What makes Fundbox unique?

One of the ways Fundbox stands apart from other business lenders is that Fundbox places more emphasis on the financial health of your business rather than other factors like your credit score. By connecting to your bank account or bookkeeping software, they can assess just how your business is doing financially. That means your personal credit is out of the picture. You can qualify based on how your business is doing, not a past personal blunder.

Fundbox financing comes with weekly automatic repayments. All you have to do is make sure there’s enough funds in your connected account.

How exactly does Fundbox work?

Fundbox offers two borrowing options in one: a line of credit and invoice financing.

As you draw from your line, you pay the amount back over 12 or 24 weeks. Fundbox automatically debits the weekly repayments from your connected account. When a payment hits, the amount of the principal you paid back becomes available to draw from again.

To finance an invoice, you simply click “Clear This Invoice” on your Fundbox dashboard to receive 100% of the invoice value from your credit line.

To make automatic repayments on the amount borrowed, you’ll need to link a business account. Fundbox can connect to over 12,000 financial institutions including national, regional, and local banks and credit unions.

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What are the benefits of Fundbox?

Quick approval decision and fast disbursement of funds. You can get an approval decision in just a few hours after supplying your business information. Once you’re approved you can draw funds from your credit line at any time, and the funds can be transferred to your account as soon as the next business day.

Predictable payments. A flat percentage fee makes repayments incredibly predictable. That means you can budget around them without a sudden or unforeseen spike.

Repay early with no penalty. Repaying the entire amount due can save you some cash. Fundbox allows fee-free early repayment. The remaining fees that come with each of your repayments are dropped.

No personal credit check. Your personal credit doesn’t determine your eligibility. If you’ve hit a bump in your personal finances, you don’t have to worry about it affecting your application. Instead, you’ll be evaluated on how your business is performing.

Keep your relationship with customers. Unlike invoice factoring where a third-party collects payment, Fundbox allows you to maintain communication with your customer while getting the invoice financed until they pay the invoice. Because Fundbox deals directly with you, there’s no need for Fundbox to infringe on that hard-built connection.

What to watch out for

Draw at-will. Having what’s essentially an open line of credit is a very tempting honeypot. When you’re able to access what you’ve paid back almost immediately after it gets to Fundbox, it can lead to overspending on things you might not need. That overspending can add up. It’s important to keep your spending habits in check, especially when it comes to money you technically don’t have yet.

Low maximum. The maximum that can be borrowed is $100,000, which is relatively low by industry standards. There’s also the potential that you won’t qualify for that full $100,000. If you need more, you may want to consider other business lenders.

Limited supported account software. There are a limited number of bookkeeping softwares that Fundbox can connect to. Most notably missing from the list is Wave. If you don’t use accounting software, or don’t use a partnered one, you can connect your business bank account. While there are over 12,000 banks and credit unions that Fundbox supports, there’s still a chance that yours won’t be on the list.

Possible change in terms. Both your credit limit and fee can change over time. Approved accounts are occassionally reviewed, and three main factors are taken into account: your payment history, invoicing volume and how up-to-date your bookkeeping is. If you’ve faltered in any of these areas, your limit and fee could change for the worse.

Am I eligible?

Fundbox’s eligibility requirements aren’t as strict as other business lenders due to Fundbox’s unique approval process. There’s no firm credit score you have to meet, but there are a few basic qualifications:

Have a registered business in the US.

Have an active invoice history for at least the past three months, possibly longer.

Use either a partnered bookkeeping software or supported business checking account.

How do I apply?

Click the Go to site button on this page to visit the Fundbox website. Applying for financing is pretty straightforward:

I was approved for a Fundbox credit line. Now what?

You’ve found Fundbox to be the solution to your business financing needs, and you’re set to improve your business like never before. From here you’ll want smooth sailing by following a couple of tips.

If you’re able to fully repay the total amount remaining, it could save you money on fees. The remaining fees are waived and there’s no early repayment penalty.

Keep at least the weekly repayment amount available in your connected business account. Late fees are steep, at triple the amount of the missed fee, plus the missed payment itself. In other words, four times the fee and the principal of the late amount. It’s important that you contact Fundbox if you think you won’t be able to make a payment.

Bottom line

Fundbox is a different kind of financing that relies on how your business’s financial health, rather than your personal credit. You might be able to quickly get the funds you need to push your business to the next level.

As with any financing option, it’s important to take into account the bad with the good. Potential overspending and rate changes should be carefully considered. You might want to compare your small business financing options to find what truly suits you best.

Frequently asked questions

Requests made before 12:00 p.m. PST Monday through Thursday will be funded as soon as the next business day. The funds are electronically deposited into the business account you link to Fundbox for repayments.

No. You can simply link your business bank account. Over 12,000 banks and credit unions are supported nationwide. These include national, regional and local institutions.

No. You can wait to draw from your funds if you don’t need them immediately. If your account is idle for too long, Fundbox may contact you to check if you’re still going to use the services, and if you don’t reply it may result in your account being closed. It’s possible to reapply.

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